What is the outlook for Tata Motors? Can I buy it now?
Reshma, Bengaluru
Tata Motors (₹703): The sharp fall from the July 2024 high of ₹1,179 is a correction within the broad uptrend that has been in place since April 2020. The support at ₹620-600 is holding well as of now and the stock is bouncing back. However, a strong rise above ₹800 is needed to give a confirmation that the uptrend has resumed. There is also a chance of seeing one more leg of fall to ₹560 and then see a trend reversal. From a long-term perspective there is potential to revisit ₹1,200 levels.
The stock can be bought in two tranches, at current levels and then on dips at ₹580. Keep the stop-loss at ₹470. Trail the stop-loss up to ₹780 when the price goes up to ₹920. Move the stop-loss further up to ₹980 when the price reaches ₹1,050. Exit the stock at ₹1,150.
I have Man Infraconstruction shares bought as per your fundamental ₹189. Can you please let me know the technical trend of this stock?
Ummachan Kuriakose
Man Infraconstruction (₹156): First and foremost, do no mix fundamental calls with technical outlook. Since you have entered this stock based on fundamentals, you may have to look at the same for exiting as well. However, we are giving here the technical picture. The stock has made a bearish breakout below the key support level of ₹170.
The outlook is now bearish for a fall to ₹120-110. Thereafter a reversal is possible. However, that reversal move has to surpass ₹175 to bring back the bullishness and strengthen the momentum. Only then a rally to ₹300-350 can come into the picture. You can buy more at ₹130. Keep a stop-loss at ₹95. Revise the stop-loss up to ₹165 as soon as the stock goes up to ₹210. Move the stop-loss up to ₹220 when the price touches ₹280. Exit at ₹320.
What is the outlook for Data Patterns (India) Limited? I have purchased the stock at ₹3,200
Kumar Annamalai
Data Patterns (India) (₹1,713): We always insist on the importance of having a stop-loss whenever a position is taken. Having a stop-loss and adhering to it will help in developing a discipline and also minimise the loss. You have entered the stock at the peak. The uptrend has got reversed. The trend is down and strong now.
Strong resistances are at ₹1,860 and ₹2,100. The stock has to rise above ₹2,100 to bring back the bullishness. But that looks less likely now. So, as long as the stock stays below ₹1,860 and ₹2,100 the downtrend will continue to remain intact. There is a danger to see further fall to ₹1,100 and even ₹950 from here. So, it is better to accept the loss and exit now rather than waiting with hope of a reversal.
I have bought Rail Vikas Nigam Limited (RVNL) shares at ₹217. Should I continue to hold or sell?
Mahendra
RVNL (₹361): The stock has been in a strong downtrend since mid-July last year. There is a crucial support in the ₹320-300 region which is holding well for now. There are good chances to see a bounce to ₹400-430 from here. A strong rise above ₹430 is needed to indicate that the downtrend has ended, and the uptrend has resumed.
If that happens, we can see a rise back to ₹600. For now, exit 20 per cent of your holdings at current levels. Keep a stop-loss at ₹290 for the balance holdings. When the stock goes up to ₹410 exit another 30 per cent and move the stop-loss up to ₹365 for the remaining. If the stock breaks above ₹430, then exit the balance holdings at ₹500. But if the stock turns down from around ₹430 then book profits on the balance holdings at ₹410.
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